Iowa rates for electricity and natural gas

Learn more about our Iowa electric and natural gas rates.

At Alliant Energy, we work hard to manage our costs and provide you with the tools necessary to budget for future energy costs. Your energy bill is made up of several components. Some, like base rates and the basic service charge, are set by the Iowa Utilities Commission and may stay the same for several years.

Other components change annually, or even monthly, based upon the actual costs of providing you with these services. Of course, the weather remains the biggest factor in how your bill may fluctuate from month to month.

This page will be updated regularly to provide the latest details on the components that make up your energy costs.

If you’d like to learn more about what each line item on your bill means, visit the Understanding Your Bill section of our webpage.

Iowa rate review

In October 2023, we filed a rate review with the Iowa Utilities Commission (IUC). The request proposed to increase Iowa customers’ electric and natural gas rates. We are proud to deliver safe and reliable service, 24/7 and 365 days a year. This filing reflects our ongoing commitment to delivering reliable, resilient and secure energy to our customers and the communities we serve in Iowa.

Since filing the request, we engaged with intervening parties and reached a partial settlement, which was submitted to the IUC for consideration in June 2024. The IUC issued an order to approve the settlement in September 2024.

New rates were implemented in October 2024.

Rate review components

Provide value to customers by planning ahead

Electric base rates are not expected to increase for at least five years. We are acting now to best manage future costs and meet customers’ energy needs.

Modernize and strengthen the energy grid

We are continuing to move power lines underground to reduce outages and improve safety. So far, we’ve placed over 20% of our 20,000+ miles of lines in Iowa underground to improve reliability.

Upgrade infrastructure

Replacing aging infrastructure enhances and strengthens our energy system.

Cost-effective, diverse energy mix

Diversifying our energy mix by adding renewables, including 400 megawatts of solar, creates new tax revenues for communities and lease payments to participating landowners. Our diverse energy mix avoids long-term costs, like fuel, to deliver greater customer value.

Rate review frequently asked questions

What options do customers have to reduce electric/natural gas bills?

We encourage all customers to implement energy efficiency tips to reduce energy usage and save on their bill. See a list of simple, do-it-yourself cost saving tips.

Additional rate options are available for residential and business customers.

We also encourage customers to monitor their energy usage and set up high-usage alerts through My Account.

If you are struggling to pay your bill, we can connect you to resources and financial assistance. More information is available here.

Why did Alliant Energy increase rates? How does this benefit customers and communities?

Guided by our purpose-driven strategy to serve customers and build stronger communities, we continue to take actions to deliver value for our customers and mitigate long-term cost risks. To achieve this, we occasionally need to make rate adjustments. The rate increase is necessary and reflects our commitment to make things better for customers through smart investments that also create a more reliable energy future.

As an essential service provider in hundreds of communities across Iowa, we are acting now to best manage costs and meet customers’ energy supply needs for decades to come.

By investing in a diverse energy mix and continuing to modernize the energy grid, we are building a more reliable, sustainable, resilient and secure energy future in Iowa. This means fewer outages and faster restoration of power during outages.

What is Alliant Energy doing to manage energy costs?

Since proposing our last rate increase in Iowa in 2019, we’ve managed costs and provided safe and reliable service throughout many of the same challenges our customers have faced, including the COVID-19 pandemic, extreme weather events like the derecho, higher operational costs and inflationary pressures that have impacted all industries. We will continue to manage costs moving forward.

To manage costs, we continue to operate our system as efficiently as possible. Our investments in new technology will further enhance efficiency and system operations.

Another key component of our long-term plan to manage costs involves our focus on developing zero-fuel cost generation resources to keep manage fuel costs and minimize risks associated with fuel cost volatility. Our plan to replace older generation facilities with a more diversified energy portfolio will help avoid future costs that we would have incurred had we continued ‘business as usual.’

How does Alliant Energy contribute to communities?

At Alliant Energy, we believe in building stronger communities. We actively invest in partnerships and initiatives that improve life in the communities we serve. We work closely with our customers and local non-profits to create lasting change. Our commitment to community extends beyond energy, reflecting our dedication to making life better for everyone.

Rate review impact on your bill

The overall impact on your bill will vary, depending on the actual energy you use. The estimated average monthly bill impact is based on projections and may be impacted by other factors, such as fuel costs and weather.

Design changes simplify how the bill looks. Some line items on the bill have changed to give customers more flexibility and control over how they manage their energy use.

Rate review impact details by customer type

Iowa energy cost outlook webinars

We offer specialized biannual webinars to our communities and our commercial and industrial customers. The most recent webinars are posted below.

Community Energy Cost Outlook Webinar (Video)
July 2024

Commercial and Industrial Customer Energy Cost Outlook Webinar (Video)
July 2024

Click to expand the links below for more information:

Natural Gas Price Outlook

Powering Beyond graphic header

New natural gas rates were implemented in October 2024. This base rate covers the cost of necessary improvements we make to deliver natural gas to our customers, including replacing aging materials, installing new inspection and safety equipment, and upgrading existing pipelines for more reliable and expanded service. See where these line items appear on your bill here.

The cost to procure natural gas for our customers is a direct pass-through for our customers and generally makes up more than half of a customer’s monthly bill.

Alliant Energy takes actions throughout the year to help stabilize the price customers pay for natural gas and minimize the impact on bills. For example, we buy and store some natural gas in the summer when the prices are lower. This contracted storage is then withdrawn and used when prices are typically higher.

On average, we are forecasting that natural gas bills will decrease slightly over the full year in 2024, when compared to 2023. Individual months will vary.

Natural gas tariffs

Electric Price Outlook

Powering Beyond graphic header

New electric rates were implemented in October 2024. Overall, electric bills in 2024 are expected to be similar to 2023. This stability is driven by the following factors:

The Renewable Energy Rider line item is discontinued starting with new rates. These costs are recovered through base rates and benefits will flow through the energy adjustment clause charge.
The energy adjustment clause is forecasted to decrease at the end of 2024.
The regional transmission service charge is expected to remain the same.
A tax benefit rider, starting in October 2024, will result in credits on customer bills for 12 months.

Electric Bill Overview

Total Bills

Overview: This is an overall look at the “total amount due” portion of your bill. While the per kWh cost of your bill is the same as others in your class, your home or business’s usage has the largest impact on your bill. If you add a new appliance or upgrade to a high efficiency cooling unit, these changes will impact your total bill.

Below, you’ll find details on each element of your bill and how they may change in the future.

⇑ Future outlook: Base rates will increase from 2023 levels with the implementation of rates from the rate review in October 2024. The change in transmission costs impacts each class differently, based on how those costs are allocated. That creates different outcomes. At this time, we expect overall costs will be similar in 2024 to what they were in 2023.

Base Rate Components

(These charges can only be changed as part of a rate proceeding before the Iowa Utilities Commission.)

BASIC SERVICE CHARGE

Overview: This is the fixed charge to each customer to connect their home or business to our system and to maintain the meter and connection.

Cost: Currently, this charge is:

Residential: $0.5096/day or about $15.50 per month.
General service: $0.7562/day or about $23 per month.

⇑ Future outlook: This charge increased in October 2024 as part of the rate review.

USAGE COSTS

Overview: This is the cost per kWh of energy used at your home or business. If you look at your meter, the number displayed is a count of the kWh your home or business uses.

This rate adjusts based on the season. Because the electrical grid must be more robust to handle the demands of summer usage, the rates increase between June 1 and August 31, when demands on our energy grid are more significant.

Cost: There are many details and options for rates for residential, general service and large general service customers. These options and rate details are highlighted in our online tariffs.

⇑ Future outlook: This charge increased in October 2024 as part of the rate review.

Riders

(These charges can be updated more frequently than Base Rate Components and do not require a rate proceeding before the Iowa Utilities Commission.)

ENERGY ADJUSTMENT CLAUSE (EAC) CHARGE

Overview: While several charges and credits flow through this line on your bill, the main component is the cost of fuel to produce energy, or the cost to purchase energy for customers.

Cost: The cost is updated and tracked online each month. This also provides visibility to the items that make up our energy costs.

⇓ Future outlook: This charge is updated monthly. Overall, this line item is expected to decrease at the end of 2024.

REGIONAL TRANSMISSION SERVICE CHARGE

Overview: Transmission service is provided to our customers by a third-party provider. This provider’s rates are based upon annual filings with the Federal Energy Regulatory Commission (FERC). Alliant Energy participates in FERC filings on behalf of our customers.

Cost: Transmission charges for all price codes are available in our online tariff document.

⇔ Future outlook: Our transmission provider updates its rates annually. Transmission costs are expected to remain steady for most customers due to our transmission provider’s ongoing investments in the transmission system, ensuring reliability for customers.

Learn more about the Regional Transmission Service Charge

ENERGY EFFICIENCY COST RECOVERY

Overview: We offer numerous programs to help customers reduce energy use. This charge covers the costs to deliver energy efficiency plans. The charge is adjusted annually and is based on your energy use.

Customer Class	Cost
Residential	$0.0009/kWh
General Service	$0.0014/kWh
Large General Service	$0.0008/kW

⇓ Future outlook: Our energy efficiency cost recovery inputs for the second half of 2024 are expected to decrease.

DEMAND RESPONSE COST RECOVERY

Overview: This program provides a discount to customers who, in return, are willing to reduce their energy usage during times of high energy demand. Demand response programs are designed to lower the costs for all customers by reducing the amount of power that must be purchased on very hot days, when the price and demand is the highest. It also reduces the need for new power generation.

Customer Class	Cost
Residential	$0.0031/kWh
General Service	$0.0023/kWh
Large General Service	$0.0016/kW

⇑ Future outlook: Our demand response cost recovery inputs for the second half of 2024 are expected to increase.

LOCAL OPTION TAX OR FRANCHISE FEE

Overview: Depending on your community, you may have a franchise fee or local option sales tax added to your bill. You cannot have both on your bill. This charge is requested by your community. Alliant Energy collects the fee and provides it to the community.

Cost: This amount varies from 0% to 5%, based on decisions made by your local city council. Please contact your city clerk to learn more.

Future outlook (varies): This charge is determined by your local community.

View your customer class below to see an estimated breakdown of the charges on your bill.

Historical Data

Those interested in looking at past cost data can reference the tables below with annual total bill costs by customer class. Customers can visit My Account to see their individual usage.

Annual average cents per kWh

Iowa annual average total bill cost per kWh chart

Line graph showing residential service yearly average total cost in cents per Kwh

Line graph showing general service yearly average total cost in cents per Kwh

Line graph showing large general service yearly average total cost in cents per Kwh

Frequently asked questions

Why is the Energy Efficiency Programs Charge a different amount for each customer type?

This charge is based on many factors for each customer, including energy use and the costs to deliver energy efficiency and demand response plans. Customer classes do not subsidize Energy Efficiency for other customer classes.

What elements make up the Base Rate?

The Base Rate is a combination of the Basic Service Charge and the Usage Costs.

What is the difference between Usage Costs and the Energy Adjustment Clause?

Usage Cost is the cost per kWh of energy used specifically at your home or business. The Energy Adjustment Clause covers many factors and adjusts monthly. The main component of the Energy Adjustment Clause is the cost of fuel to produce energy, or the cost to purchase energy for customers.

Why do I have a Franchise Fee or Local Option Sales Tax listed on my bill?

Depending on your community, you may have one of these on your bill. You cannot have both on your bill. This charge is requested by your community. Alliant Energy collects the fee and provides it to the community. Decisions about this are made by your local city council.

This information was last updated in October 2024.